The Ecuadorian Social Security Institute (IESS): economic evaluation and options for reform. Revised ed.
The Ecuadorian Institute of Social Insurance (IESS) administers numerous programs including pensions, maternal health care, occupational risks, severance pay, and funeral aid. Together, however, pensions and maternal health care absorb approximately 90% of IESS benefit expenditures. This paper analyzes the economic-financial situation of the IESS, discussing its organization, population coverage, financing, expenditures, and financial equilibrium. All IESS programs are covered in the report, but central attention is given to pensions and maternal health care. The final section of the report provides policy guidelines for the future reform of the social security system, as well as a research agenda for the future. The author recommends reform of the IESS through the creation of a mixed system combining a reformed IESS, which would provide basic benefits, with private sector participation, which would provide supplementary benefits.